Maricopa County housing agency under fire

The Maricopa County Board of Supervisors on Monday took over control of the Housing Authority of Maricopa County amid U.S. Department of Housing and Urban Development findings of mismanagement.

The housing organization has been run by commissioners handpicked by supervisors since 2004, when the board handed off day-to-day control. The housing authority helps provide affordable housing to county residents.

The five-member board unanimously approved a resolution that allows it to reassert operational control of the agency. The Arizona Republic has learned that the Board of Supervisors could soon name Gloria Muñoz, a county housing commissioner, director of the department.

Supervisor Mary Rose Wilcox explained her vote by saying, "It was out of control and that HUD audit found it was just not being managed as it should be."

In October, a Republic request for a copy of the housing review from Maricopa County was denied. In response to a separate December request for records involving the housing authority, a county spokeswoman said there was nothing to release. The Republic obtained the report from HUD through the Freedom of Information Act.

Wilcox said she has not seen the audit. Neither had at least three other supervisors, according to their staff.

County Manager David Smith said he hopes the board's decision will clean up the housing agency.

"The actions of previous management put the authority in some disarray and it was severe enough that it obviously came to the attention of HUD and others," Smith said. "It's very concerning because they're claiming it was the kind of misspending that might have to be repaid by the county's general fund."

Doug Lingner, former executive director of the housing authority, resigned last year amid allegations of nepotism and mismanagement. A former Phoenix councilman, Lingner denied wrongdoing and said he was the victim of a political hit job.

Housing officials conducted the onsite review of the agency's financial controls and management operations March 15-26, and remotely through July 30.

HUD discovered more than two-dozen issues with the agency, saying, "The review has revealed a history of unsatisfactory performance in financial, procurement, governance and personnel areas."

Among the review's findings:

- County housing officials charged $4,225 for entertainment and social activities unrelated to travel or training on the housing authority's credit card. Officials charged 77 meals for a total of $2,500 between September 2008 and December 2009, and Christmas parties in December 2008 and December 2009 totaling $1,725.

- Lingner violated procurement regulations in awarding a construction contract to his brother to put up awnings. Staff selected a contractor, but the former director obtained a quote from his brother - who appeared to be unlicensed, unbonded, uninsured and inexperienced - that was $225 less than the quote obtained by staff. The award was a violation of the agency's conflict-of-interest policy and federal contracting requirements.

- The agency hired consultant Bilsten and Associates three times "for services that were not necessary and at prices that were not established as reasonable." The firm's Peggy Bilsten served with Lingner during his time on the Phoenix City Council.

- The agency "failed to bill and collect funds owed to them" in a timely manner and had poor collection processes and a lack of internal controls.

- The agency increased the number of housing-choice vouchers beyond its ability to fund the increase. The agency borrowed money from other HUD programs against HUD regulations. The money must be paid back.

by Yvonne Wingett The Arizona Republic Dec. 14, 2010 12:00 AM



Maricopa County housing agency under fire